War is driving satellite startups more than the climate business

The rise in conflicts is redirecting the focus of emerging space companies, which see defense as a faster source of revenue.

Negocios Now Editorial Staff

In recent years, numerous satellite startups have emerged promising to help combat climate change by providing key data on crops, urban temperatures, and natural disasters. However, that objective has begun to shift.

Today, a growing number of these companies are shifting their services toward military and intelligence applications. According to industry executives, most of the current demand comes from governments and defense agencies interested in strategic surveillance, conflict monitoring, and tracking critical infrastructure.

Several Earth observation startups , for example, have reported that more than 60–70% of their revenue comes from government or military contracts, not from the climate or commercial sector.

War, a more profitable business

The shift is primarily driven by economic reasons. While climate services still face difficulties in establishing profitable business models, contracts with the defense sector offer higher and more sustained revenues.

Companies in the sector have reported that their recent growth stems almost exclusively from sales related to security and intelligence. Furthermore, increasing global military spending—driven by conflicts such as the one in Ukraine and now the war with Iran—has accelerated this trend.

The conflict with Iran and its energy impact

Meanwhile, the war with Iran has entered a new phase, with attacks targeting energy infrastructure, adding pressure to global markets. This context further underscores the need for real-time satellite information, both for military operations and for monitoring strategic resources.

The combination of geopolitical tensions and energy security has turned satellites into key tools, increasing their value within the defense sector.

The risk of leaving the climate goal behind

Despite this boom, some analysts warn of the risk that companies may lose sight of their original mission. A lack of solid commercial demand for climate data could relegate these projects to a secondary role.

However, some industry leaders argue that revenue from military contracts could indirectly fund the development of environmentally friendly technologies in the future.

A balance yet to be defined

The current landscape shows an industry in transition. On the one hand, climate change remains one of the greatest global challenges; on the other, the market is rewarding solutions linked to security and defense.

In this delicate balance, satellite startups will have to decide whether to prioritize immediate profitability or maintain their commitment to long-term environmental impact.

Read article in Spanish / Leer artículo en español: https://negociosnow.com/la-guerra-impulsa-mas-a-startups-satelitales-que-el-negocio-climatico/